We apply a monopoly trade union model and analyze employment, wage and budgetary effects of (i) an inflow of migrant workers and (ii) an increase in the labor market participation rate of migrants. Per assumption, natives and migrants solely differ with respect to the level of benefit claims in...

Unlike prototype immigration countries, Germany has attracted a large number of southern Europeans as temporary guestworkers in the 60s and 70s. Nevertheless, many of them have stayed on and intend to remain in Germany. I investigate whether these workers have become successfully integrated into...

We test the assimilation hypothesis as initially proposed by Chiswick (1978) by making. use of a rich panel dataset for Germany which allows us to control for unobserved population heterogeneity and potential selectivity bias arising from an individual's re-migration decision and employment...

Germany has become the second-most important destination for migrants worldwide. Using all waves from the microcensus, we study their labor market integration over the last 50 years, and document key differences to the US case. While the employment gaps between immigrant and native men decline...

We develop a new general equilibrium model of monopolistic competition with heterogeneous firms, variable demand elasticity and multiple asymmetric regions, in which trade integration induces wage and productivity changes. Using Canada-US interregional trade data, we structurally estimate a...